The building was previously owned by the former owner of Hearts football club, Vladimir Romanov.

Romanov's company Ubig haD acquired the building in a £20 million deal in 2007 with a view to converting it into a boutique hotel, but had failed to secure funding for the venture.

Ubig entered administration in November 2013 amid claims of financial irregularities and the building was actioned off in January 2014 by Lithuanian administrators following the collapse of Romanov's business empire.

The building was then sold at auction to an unnamed bank in what is described as a “complex deal involving the non-performing loans backed by the properties”.

Chris Stewart Group stated at the time of purchasing the property in 2014, plans to create 60,000 sq ft of Grade A office accommodation alongside a hotel, serviced apartments, retail and restaurant units.

Chris Stewart, chief executive of the Chris Stewart Group, said: “Our newest project is proving to be one of our most challenging, but also our most fascinating.

“There are details around almost every corner which we keep uncovering, with a whole raft of original fixtures and fittings still visible.

“The development of the old RBS headquarters is part of a wider plan to create a vibrant, active area in a prestigious part of the city - which has been neglected for a number of years - by providing an attractive and safe environment for all.

“This will include the pedestrianised West Register Street and the addition of lights, street furniture and greenery, which will enhance both the ambience and security of the area.

“The overall development will take several years, although we are sure the results will make the wait more than worth it.”

Gavin MacLennan, general manager of Lateral City Apartments, said: “42 St Andrew Square is a building full of history and heritage, and after years of being closed off to the general public, we are extremely excited to be working on what will become the pride of the city when complete.

“Although relatively new to the market, Lateral City has firmly established itself at the higher end of the serviced apartment sector, with a number of awards recognising our unique approach.

“We’re looking to replicate our current ethos in The Edinburgh Grand, which will sit well alongside our existing properties – Old Town Chambers and Merchiston Residence – and will offer an increased variety of options amongst the city’s burgeoning serviced apartment sector.”